Finnish economy: I feel the pace quickening
Summary
- The Finnish economy has experienced unexpected growth over the past two and a half years, with revised GDP figures showing increases of 0.9% in 2024 and 0.8% in 2025, contrary to previous estimates of contraction and minimal growth.
- Preliminary data for Q2 indicates a seasonally adjusted GDP growth of 0.9% quarter-on-quarter and 2.5% year-on-year, suggesting a significant economic acceleration this year.
- Despite the positive GDP figures, consumer confidence remains cautious, with little change in personal financial conditions but improved expectations for the future, indicating potential for increased domestic demand.
- GDP as a metric remains challenging, with historical data revisions highlighting its complexity and limited impact on current decision-making.
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Automatic translation: Originally published in Finnish 02/08/2026, 15:09 GMT. Give feedback here.
The Finnish economy has, after all, been growing, and at an accelerating pace for the past two and a half years. But will it change anything in our behavior?
Finnish economic growth, %
Source: LSEG, Inderes
During my summer vacation, the biggest surprise in domestic economic news was that the Finnish economy is, after all, growing, and has been growing for as long as two and a half years. Already during Midsummer week, Statistics Finland published revised figures for the past two years' growth. Instead of Finland's GDP contracting by 0.2% in 2024 and growing by a meager 0.2% in 2025, it actually grew by 0.9% and 0.8%. Not mega-growth, but faster than anticipated nonetheless. To top it all off, at the end of July, Statistics Finland published preliminary figures for Q2 growth. According to these, seasonally adjusted GDP grew by 0.9% quarter-on-quarter and by 2.5% year-on-year. Already in Q1, growth reached 0.9% quarter-on-quarter, so it appears that economic growth has really taken off this year.
Recent news particularly highlights how difficult a metric GDP ultimately is. Only now have we received more precise data on 2024 economic growth, and even this year's figures may still be significantly revised in the future, in either direction. The further back in history we go, the less economic figures influence our current decision-making, if they influence it at all. The acceleration of the economy has not yet led the consumer sector to celebrate, as indicated by recent consumer confidence figures.
Source: Statistics Finland
In July, there were hardly any changes in the current state of personal finances, but expectations for both personal and the Finnish economy improved. Given the still challenging employment situation, it is not surprising that consumers' current sentiments have not significantly improved, but a slight positive trend is seen for the future. This is a good signal for domestic private demand and provides a basis for shifting the narrative of the Finnish economy in a more positive direction. We will still rise from this.
Matti and Teppo as the inspiration for the macro review title.
